Ella 
On Tuesday, the Australian dollar/US dollar fell 0.41% after the Reserve Bank of Australia (RBA) decision was announced, and the Asian market opened basically unchanged on Wednesday. The Reserve Bank of Australia kept interest rates unchanged, which was more dovish than expected. Nonetheless, AUD/USD is still trading at 0.6532, almost unchanged.
AUD/USD remains strong following RBA decision
On Tuesday, the Bank of Japan (BoJ) and the Reserve Bank of Australia (RBA) announced their March monetary policy decisions. The Bank of Japan raised interest rates by 10 basis points for the first time in 17 years, ending the era of negative interest rate policy. Additionally, the Bank of Japan ended its bond yield control curve policy and its ETF buying program. The Reserve Bank of Australia softened its rhetoric while leaving the door open to further tightening policy if necessary.
At the same time, U.S. stocks closed higher due to the Federal Reserve’s decision. In terms of economic data, the U.S. economic report released housing data. Building permits rose 1.9% to 1.518 billion from 1.489 billion, a sharp improvement from January’s data. Housing starts rose 10.7% to 1.521 million from 1.425 million.
There is no economic data released in Australia, and AUD/USD traders are still waiting to see the Federal Reserve interest rate decision. ANZ analysts commented that the Federal Reserve is not expected to make major changes to its Summary of Economic Projections (SEP). In terms of interest rate cuts, analysts at ANZ Bank pointed out: “We believe that the Federal Reserve will cut interest rates by 25 basis points each time in the second half of the year, and will reduce interest rates by 100 basis points this year.”
